The PMO: Mission Critical for the Volume-to-Value Transition March 1, 2016
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1 The PMO: Mission Critical for the Volume-to-Value Transition March 1, 2016 Heather Spyke, Director of PMO & Services, Children s Healthcare of Atlanta Bob Schwyn, Partner, The Chartis Group
2 Conflict of Interest Heather Spyke, MBA, PMP Has no real or apparent conflicts of interest to report. Bob Schwyn, MBA Is employed by The Chartis Group, which provides services that are discussed as a part of this presentation.
3 Agenda Volume to Value: Industry Perspective on the Changing Role of Project Management Children s Journey Lessons Learned Q&A
4 Learning Objectives Explain the value of formalized PMO functions and the critical role they play in supporting the shift from volume to value and tightening budgets in a post-ehr era. Describe how to implement a roadmap to improve the maturity of your project delivery engine. Explain how to identify key factors to ensure consistent high-quality project delivery. Identify the most useful lessons learned from this organization s experience and how these takeaways can be deployed in your own organization.
5 Value of Health: STEPS S ATISFACTION S AVINGS
6 Volume to Value: Industry Perspective on the Changing Role of Project Management Children s Journey Lessons Learned Q&A
7 The Industry is Changing The healthcare industry is in the midst of a multi-faceted shift that is fundamentally changing the context in which providers are delivering care. RISE OF THE CONSUMER The role of the provider is being transformed and will continue to evolve over the next 10 years. MIGRATION TO VALUE STRATEGIC IMPLICATIONS TECHNOLOGY ADVANCEMENTS Business strategy and information and technology strategy are increasingly merging into one.
8 Reorienting Care Delivery The most successful organizations will reorient their system of care from a reactive illness-driven model to one that creates value for consumers and payors by promoting and sustaining health.
9 Where We Can Go Illustrative Value Realization Relative Value Opportunities Value (ROI) IT IT Savings Operations Operations Benefits Much of the industry today Enterprise Strategy growth, partnerships, patient engagement, population health, value based purchasing, Clinical new models of care Transformation Improvements to care delivery, effective capacity, evidence based practices, and predictive analytics Relative Effort - Complexity of Change Clinical Outcomes Enterprise Gains TOTAL OPPORTUNITY
10 The Need to Expand Project Management Methodology With a rapid industry shift towards value-based care, organizations have an increasingly stronger need for more efficient and effective project portfolios that are well aligned with the business objectives and are maximizing the value of IT investments. Project Management Benefits Management Value Management
11 Orienting Toward Value Implementation Oriented Organization Technology is viewed as a solution to problems and a driver of processes. Business justification is provided up front and used for project approval only. Success is defined by projects being on-time and on-budget. Clinicians and staff members are engaged primarily for the implementation effort. Projects end at go-live and operationalization of technology. Value Oriented Organization Technology solutions are viewed as a means to realizing productivity and quality gains in conjunction with process. Business objectives are identified for all initiatives. User and patient experience are measured and are a key indicator of success. Clinicians and staff members are engaged in continuous process improvement, and IS a partner. KPIs and metrics are used to drive accountability for sustained and continued value.
12 3 Required PMO Practice Disciplines VALUE MANAGEMENT PORTFOLIO MANAGEMENT SPONSOR MANAGEMENT
13 Value Management Value Management Value Management is a process that spans the full project lifecycle and may occur months after the project is completed. Its purpose is to determine, track and ensure delivery of value in support of the organization s strategic initiatives. Requirements Planning phase and execution phase deliverables Value realization document Documented SOP and training material Benefits Validation of project results to the original benefits outlined in the business case document that are aligned with the organizational business imperatives. The Value realization document includes a plan for measuring hard and soft benefits, such as increased savings or improved customer satisfaction.
14 Value Management: Core Competencies PROJECT PROGRAM & PORTFOLIO MANAGEMENT DISCIPLINE Governance Change Management Continuous Improvement Outcomes Driven IT Services VALUE Usability Experience Quality Safety Financial
15 Portfolio Management Portfolio Management A portfolio refers to projects and programs managed as a group to achieve strategic objectives. Portfolio management refers to the centralized management of one or more portfolios. Requirements Documented SOP and training material that focuses on leveraging use of the Project Portfolio Management (PPM) System. Benefits Portfolio management will focus on reviewing projects and programs and prioritizing resource allocation to ensure alignment with organizational strategies.
16 Portfolio Management Portfolio management makes use of evaluation, prioritization, selection and ongoing optimization to achieve business value from IT investments. Right Things Portfolio Management Right Way Program Management Value Management Done Well Project Management Source: Adapted from The Information Paradox by John Thorp. McGraw Hill 2003 and Val IT 2.0 Framework ISACA 2008.
17 Value Portfolio Management Focus H L Cost / Complexity Ideal Portfolio Balance H L
18 Sponsor Management Sponsor management is a process of continuous communication to understand the needs and expectations of sponsors, which may change throughout the project life cycle. Sponsor Management Requirements Project Sponsor and PM self-assessment plan to ensure continuous communication throughout the project lifecycle. Documented sponsor training material. Benefits Stakeholders are engaged in project decisions, execution, and addressing issues as they occur. Stakeholder satisfaction is managed as a key project objective.
19 Audience Polling: Are the demands for project delivery and quality increasing more now as your organization shifts from volume to value? Yes definitely Just a bit Not sure Not at all
20 Audience Polling: Do you believe the role of Project Management and the PMO in delivering value to the organization will be more important in the near future? Yes definitely Maybe a little bit Not sure Not at all
21 Volume to Value: Industry Perspective on the Changing Role of Project Management Children s Journey Lessons Learned Q&A
22 The Way We Were Heather Spyke Director Manager, Implementations Manager, Implementations Manager, PMO/EPM Manager IS&T Resource Allocation Program Manager Info Sec Program Manager Infrastructure Project Managers (9) PMO/EPM Resources (3) Res. Mngmnt. Resources (4) Project Managers (5) Project Managers (4)
23 The Way We Were Portfolio Management Benefits Realization Project Transition and Closure Demand and Capacity Management Reporting and Communication Change Management Budget Management Schedule Management Issue and Risk Management Resource Management Project Intake No Established Processes Limited/Basic Management Initial Where we really were Structured Documented and Repeatable Processes Established Where we thought we were Institutionalized Where we want to be Managed Efficient/Effective Performance Measures Optimized
24 Where We REALLY Were More mature in: Scope management Risk and issue management Schedule management Budget management Reporting Supplier management Portfolio management EPM support and usage Less mature in: Project resource management Project change management Value management Project quality management Sponsor management
25 Where We Want to Be Good at core facets, not everything What are those facets? Project management Portfolio management Resource management Change management Project quality management
26 Getting From Here to There Guiding Principles of This Project Balance Consistency Measurable Action Simplicity Compliance / Accountable
27 Getting From Here to There Q1 Q2 Q3 Q4 Establish PMO Absolutes Define desired future state Confirm critical project management expectations Simplicity and consistency Determine baseline targets Initiate Hardwiring Drive Discipline & Rigor Define roles and accountabilities Initiate performance expectations Expect progress and results Reset customer expectations Measure PMO Program progress Launch performance dashboard (metric targets) Monitor portfolio performance/risk Measure and Monitor The Project Portfolio Improve PMO performance Introduce strong business case requirements Confirm benefits realization accountabilities Focus on achievement of greatest returns Enhance Value Discipline
28 Value Children s Portfolio Management Focus Illustrative H o Barcoding Rx Admin ED o Barcoding Blood CHOA.org Enhancements Epic Optimization for MCC Day Rehabilitation Epic Electrophysiology Pruka Upgrade o Anesthesia Machine Replacements o XLTek Interface EPIC o Implement Security Operations Center Services Authority Controls in Epic for APPs CIN Subspecialty Measure Reporting o SSO Upgrade- Expansion ASC Planning Ambulatory Reference Lab Ambulatory Therapy Plans o API Upgrade BCA Epic Downtime Module Legend L L Epic Report for Audiology o CA UIM Phase 3 Complexity o Strategic Project Operational/ Routine Project H
29 Getting From Here to There Metrics: Strategic alignment improved Quality indicators Improved decision making PMO professionalism PM efficiency
30 Where We Are Project status Project close out completed December % objectives satisfied, 100% success criteria met 26 major deliverables accomplished all but one were new 3 deliverables outstanding with plans to accomplish post-project Metric status Improved strategic alignment Measures Change Strategy-Related Projects % Total Strategy Budget $11,157,467 $16,339, %
31 Where We Are Quality indicators: Post-live support reduction Completed projects Hours devoted to Project Management Improved decision making: PMO insights available to all management PMO insights includes portfolio, program and project PMO insights includes resource management
32 Where We Are
33 Executive Dashboards
34 Portfolio Dashboards
35 Portfolio Dashboards Program Dashboards
36 Project Dashboards
37 Portfolio Insights
38 Program Dashboards
39 Project Insights
40 Portfolio Gantt
41 Where We Are PMO Professionalism PM Efficiency Automated Status Reports (ASR) 56% increase in timely project status reports ( ) In month following ASR go-live: 2.6 day reduction in time between project updates 137% increase in risks logged/tracked 142% increase in Issues logged/tracked 61% increase in schedule planning 21% increase in projects with baselines Tracking of % complete, all project data, more accurate
42 Project Exceptions
43 Volume to Value: Industry Perspective on the Changing Role of Project Management Children s Journey Lessons Learned Q&A
44 Lessons Learned
45 Lessons Learned What worked? Treating transformation as project Communication Buy-in Team Leadership What could have worked better? Focus and accountability after de-centralization All stakeholders on same page What was more challenging than we thought? Value management
46 Take-A-Ways Acknowledge the critical role the PMO plays in delivering on the transition from volume to value for the enterprise. Obtain commitment and prioritize the value of an optimal PMO. Set clear expectations with leadership educate, if needed. Understand current state and define future vision. Use industry best practices where possible. Measure the outcomes and communicate those results broadly. Treat the transformation as a project.
47 Value of Health: STEPS S ATISFACTION S AVINGS
48 Questions Heather Spyke (404) Bob Schwyn (937)
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